Last One Out Turns The Lights Off, page-57

This re-trace has been overdone. Next week could see us back on the upward path.

At 18.5c we are trading at around 3.5% of Mt Peake's NPV. Putting aside all other assets, and the significant opportunity with Hyundai Steel etc this is just seriously cheap. Management needs to deal with the Chinese selling and I am certain they will do something there. I am sure the Koreans are starting to get quite interested in taking the Chinese out at these prices. Do not be surprised if that happens in the next week or so.

Disappointing to see the slide from 34c, however, these sort of stocks are going to be sometimes violent in their price movements. I still believe we should be trading at about 10% of NPV. When the finance deal is cemented, far higher. So, perhaps 50c right now. In my view then we are trading at a heavy discount to fair value. I hark back to the Hardman research report of about 18 months ago which put a value on TNG (pre any association with Posco/Hyundia/Woojin etc) of 45c. I think they had it right, in terms of a value pre Finance Deal. Once we have a serious finance deal, well, frankly, we are off to the races!

We are in the right metals at the right time. Scary to watch a price slide, but, the brave, in this instance, are going to do very well, in my opinion.